GBP/USD stays defensive above 1.2400 as BoE hawks hesitate, focus on Fed Chair Powell
GBP/USD licks its wounds near 1.2410 as it benefits from the market’s consolidation ahead of the key events. That said, the Pound Sterling dropped to the lowest levels in three weeks the previous day amid broad US Dollar strength. Also weighing on the Cable pair was the Bank of England (BoE) Officials’ inability to defend the hawkish moves amid fears of tighter monetary policy’s negative economic impacts.
On Thursday, top-tier BoE officials faced questions by the UK parliament's Treasury Select Committee (TSC) about the central bank's sales of bonds bought under its quantitative easing programme. Among them was BoE Governor Andrew Bailey, Deputy Governor Dave Ramsden and Deputy Governor Ben Broadbent. If we closely examine their statements, all of them defends the Quantitative Tightening (QT) but fails to suggest more moves in that directions while fearing economic consequences. Read more...
GBP/USD Price Analysis: Bulls are lurking in demand area
In the prior analysis, GBP/USD Price Analysis: Bears are moving in on the risk rally, it was explained that the M-formation was explained to be a topping pattern that had formed as the potential for the final stage of the prior bullish rall.
The price was on the backside of that trendline where traders were anticipated to trade on the short side. Read more...
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